Julia Gillard wants Qantas dispute with unions resolved

PRIME Minister Julia Gillard says the Federal Government wants to bring the industrial action by Qantas and unions to an end.

"I believe Australians want to see this dispute settled, I want to see it settled," she said in Perth.

The airline yesterday took the unprecedented action of grounding its Qantas domestic and international fleets due to ongoing industrial action by pilots, licensed engineers, and baggage, ground and catering staff.

An emergency Fair Work Australia hearing is being held today in Melbourne at the request of the Government after Qantas made the shock announcement, which included a plan to lock out workers from tomorrow night.

The Government initially applied to terminate or suspend the industrial dispute.

But today it looked to have hardened its stance, with Ms Gillard repeating that she wanted the dispute to end.

"The Government in this matter is seeking to bring industrial action to an end and to have the dispute resolved, so that we can proceed with certainty with our iconic airline Qantas, proceeding properly and with the circumstances where employees and Qantas know what the future holds for them," Mr Gillard said.

The Government initially applied to terminate or suspend the industrial dispute.

But today it looked to have hardened its stance, with Ms Gillard repeating that she wanted the dispute to end.

"The government in this matter is seeking to bring industrial action to an end and to have the dispute resolved, so that we can proceed with certainty with our iconic airline Qantas, proceeding properly and with the circumstances where employees and Qantas know what the future holds for them," Mr Gillard said.

"As I made clear yesterday, we took this action when the dispute escalated," she said.

"We did it because we were concerned about damage to the national economy.

"So the hearings at Fair Work Australia are in train as we speak."

Ms Gillard said the Government had taken the appropriate action on the dispute.

"The Government is arguing for an end to industrial action before the commission ... (and) after the end of industrial action, for there to be conciliation processes and if they do not work, for there ultimately to be a determination process to end the substantive matters in dispute," she said.

"So we are seeking an end to the industrial action."

Ms Gillard also said the Gvernment had been working with the leaders attending the Commonwealth Heads of Government Meeting (CHOGM) to get them home after the gathering ends in Perth today.

"Our CHOGM taskforce has, through our liaison officers, been offering assistance so we are continuing to work with leaders on alternate flight plans," she said.

"I understand most leaders have found alternate arrangements."

Asked about a call by Independent South Australian senator Nick Xenophon for a judicial inquiry into the dispute, Ms Gillard repeated the Government's desire to see the matter resolved.

"My interest here as Prime Minister is to see this industrial disputation resolved and for us to know that Qantas is functioning and employees are being properly dealt with in Qantas," she said.

"That is why I took the action I did yesterday."

Senator Xenophon said today an inquiry, with the powers of a royal commission, could investigate the claims and counter claims at the heart of the dispute.

It would have the power to call both Qantas management and union leaders to give evidence, under oath, and for a "forensic examination" of Qantas' claims that it is losing money on international routes, the senator said.